Some report that bank fees for your checking accounts are on the rise. Due to the recent Durbin amendment, banks are no longer allowed to charge excessive fees to retailers for customers using debit cards in their machines. Because of this limitation, banks have sought out other ways to earn this extra source of income. On average, they are hiking up our other fees. Some of these fees include:
- withdrawing money from a non-bank owned ATM
- minimum amount of money to open an account
- minimum amount of money in your bank account
- overdraft fees
A lot of consumers aren’t very happy about the increase in charges, especially since banks were originally intended to allow you a place where you can go to store, and pick up your money at your convenience, not be charged percentages of your income.
Here are two ways to keep yourself from falling prey to these rising fees.
1) Save your money and keep it in just one account. Consciously saving and consolidating your money into one account holds many benefits for you. You will be more likely to meet the minimum balance required to qualify for no fees. An added benefit is that you are less likely to overdraft from your account as you will have a nice cushion of savings to draw from should your budget run out.
2) Open just a savings account. Use a savings account to store your money and nothing more. Cash checks or withdraw cash when you want to buy something. If you want to write a check, make out a money order instead. Find a way to not need a check card, and you’ll be less likely to have to pay a convenience fee at a local store or gas station. Things are always cheaper when they’re paid for with cash.
You don’t have to be a victim of your bank’s fees. Learn how they work and avoid them wherever you can.